How does America buy goods from other countries if our currency is worth nothing to them?

Question

I've always wondered how America can buy stuff from canada, china, japan, etc. but the U.S. currency is worth nothing to them? right?

Answer 1

The dollar is only worth something to them because they can use it to buy US products. They sell something to us and then use the dollars received to buy something from us.

Some countries like China seem to want to sell much more to us than they buy from us. They then use the surplus dollars to buy US government securities. Consequently, China now owns more than one trillion dollars of these securities.

Why China wants to do this is somewhat of a mystery to me. If I was a Chinese citizen, I would be rather annoyed at having to work long hours at a low paid job to produce underwear, appliances, and computers for rich Americans. Do the Chinese already have so many of these products that they are happy to send the surplus to the US?

Answer 2

Wrong. It's worth one dollar to them same as to you. Why? Because they can do the same thing you can, i.e. buy products and services, especially those originating in America, but actually from anyone who is willing to accept dollars in payment. When the Thais buy oil from Saudi Arabia, they pay in dollars because the Saudis want dollars, not baht.